Taiwan’s stock market index recovered more than 300 points on Wednesday and rose back above the 17,000-point mark after having fallen below it on Tuesday, but turnover remained relatively low.

The Taiex, the Taiwan Stock Exchange’s weighted index, ended up by 310.74 points, or 1.83 percent, above the five-day moving average of 17,160 at 17,301.65, after moving between 17,080.4 and 17,333.21. Turnover totaled NT$260.96 billion (US$9 billion).

All major stock categories gained ground, with stocks in the bellwether electronics and the transportation sectors leading the rally with a surge of 2.34 percent and 3.31 percent, respectively.

Tech stocks

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, rose by 2.87 percent to close at NT$573.

The surge in TSMC shares pushed the stock’s market cap back to NT$14.85 trillion.

United Microelectronics Corp., a smaller contract chipmaker, ended up by 2.54 percent at NT$48.50, while smartphone IC designer MediaTek Inc. closed up by 4.51 percent at NT$880.

Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co. closed up by 1.96 percent at NT$104 and IC packaging and testing services provider ASE Technology Holding Co. gained 2.59 percent to close at NT$99.10.

Meanwhile, power management solution provider Delta Electronics Inc. closed up 2.82 percent at NT$255.50.

Transportation sector

In the shipping industry, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, soared by 3.27 percent to close at NT$140.00.

Other major stocks in the shipping sector also made gains, including Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd., which rose by 3.75 percent and 3.27 percent, respectively, to end at NT$124.50 and NT$158.00.

In the wider transportation sector, EVA Airways ended up by 3.37 percent at NT$35.25, the highest since December 2010, and China Airlines climbed by 3.11 percent to close at NT$28.20.

The financial sector, meanwhile, gained 0.48 percent.

However, the turnover in Taiwan’s stock market on Wednesday remained at a low level at NT$260.96 billion, which included NT$114.87 billion in the electronics sector, accounting for 44.02 percent of the total, and NT$57.42 billion in the transportation sector, which was 22 percent of the total.

Of the last 16 trading days on the local stock market, only three trading days have seen daily turnover surpass NT$300 billion, according to TWSE data.

According to TWSE, foreign institutional investors sold a net NT$10.09 billion in shares on the market on Wednesday.

Analyst’s view

Wu Ji-xian (???), manager of the Taishin Taiwan Small & Medium Cap Fund, said that there were signs of a foreign exodus from Taiwanese equities as the local dollar weakens and concerns mount over soaring raw material prices driven by the Russia-Ukraine war.

Investors who also anticipate that the U.S. Federal Reserve and the European Central Bank will tighten monetary policy at a much faster pace are intensifying capital outflows from the local stock market, according to Wu.

However, the Taiex is expected to hover around 17,000 points in the near future, said Wu.

Source: Focus Taiwan News Channel